Suppose the Income Elasticity of Demand for Toys Is +2

question 153

Multiple Choice

Suppose the income elasticity of demand for toys is +2.4. This means that

• A)a 4 percent increase in income will increase the purchase of toys by 9.6 percent.
• B)a 4 percent increase in income will increase the purchase of toys by 1.67 percent.
• C)a 4 percent increase in income will decrease the purchase of toys by 9.6 percent.
• D)toys are an inferior good.

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Definitions:

Monozygotic Twins

Twins that originate from a single fertilized egg, resulting in genetically identical individuals.

Genetic

Relating to genes or heredity, and the influence of genes on the physical and behavioral characteristics of organisms.

Environmental Factors

External elements, including physical, social, and cultural conditions, that can influence an individual's development and behavior.

Reduced Intelligence

Refers to a lower than average ability in cognitive functions, including problem-solving, learning, and memory.